Apply DuPont Disaggregation of ROE

Selected balance sheet and income statement information for Facebook Inc. follows.

a. Compute ROE and disaggregate the ratio into its DuPont components of ROA and financial leverage.

Note: 1. Select the appropriate numerator and denominator used to compute ROE from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute 2018 ROE.

Note: 1. Select the appropriate numerator and denominator used to compute ROA from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute 2018 ROA.

Note: 1. Select the appropriate numerator and denominator used to compute Financial Leverage from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute 2018 Financial Leverage.

b. Disaggregate ROA into Profit Margin and Asset Turnover components.

Note: 1. Select the appropriate numerator and denominator used to compute Profit Margin from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute 2018 Profit Margin

Note: 1. Select the appropriate numerator and denominator used to compute Asset Turnover from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute 2018 Asset Turnover.

\begin{tabular}{l|r|r|} & & Dec.31, \\ \hline \$ millions & Dec. 31,2018 & 2017 \\ \hline Total assets & $98,944 & $86,134 \\ \hline Total liabilities & 14,817 & 11,787 \\ \hline Sales & 57,448 & \\ \hline Net income & 23,722 & \\ \hline \end{tabular} \begin{tabular}{l|r|r|} & & Dec.31, \\ \hline \$ millions & Dec. 31,2018 & 2017 \\ \hline Total assets & $98,944 & $86,134 \\ \hline Total liabilities & 14,817 & 11,787 \\ \hline Sales & 57,448 & \\ \hline Net income & 23,722 & \\ \hline \end{tabular}